Treasurer`s Report to Council

2010-11 ALA CD #13.1 (2011 Annual Conference)

Presented By – James Neal Tuesday June 28, 2011 New Orleans, LA

1.

Fiscal Year 2011 Budget

2.

ALA Long-Term Investment Fund

3.

Proposed Change in ALA Policy 8.5.1

4.

ALA Investments in New Technologies

5.

New Business Development Strategies

6.

Fiscal Year 2012 Budget 2



Total ALA Revenues (all combined funds) $27,300,659



- $ 703,892 less than budget (-2.3%) and $3.8 million less than last year (-11.2%)

General Fund Revenues $14,744,758



$6.4 million less than last year (-18.9%)

Total ALA Expenses (all combined funds) $29,729,574



- $ 481,518 less than budget (-1.7%) and

- $ 503,572 less than budget (-3.3%) and $ 106,343 more than last year (0.7%)

General Fund Expenses $17,591,730

- $ 513,842 more than budget (3.0%) and $ 696,144 more than last year (4.1%) 3



Division Revenues: Division Expenses:

$ 641,376 less than budget (-6.7%) $1,493,832 less than budget (-14.4%)



Roundtable Revenues: Roundtable Expenses:

$ $



Grants and Awards:

$ 438,948 more than budget (18.1%)



Investment Interest Dividends: $ 248,302 more than budget (77.2%)



Long-Term Investment:

23,820 less than budget (-11.0%) 67,783 less than budget (-46.6%)

$33,750,178 ($28.9 million in Aug. 2010)

4

Revenue Shortfall General Fund

($ 442,000)

Expense Overage

($ 449,000)

Total

($ 891,000)

Expense Adjustments Personnel Related

$ 128,000

Building & Technology Related $ 131,000 Governance/Committees

$

38,000

Publishing & Conferences

$

170,000

BCBS Refund

$

220,000

BCBS Reserve

$

50,000

$

737,000

($

154,000)

Total

Shortfall/Board Reserves

5

$154,000 - $375,000

6

$33,471,467 (as of May 31, 2011),

($28.9 million at end of FY10)  Growth

in value through managed investments.

 Transfers  New

from fund balances.

gifts and contributions.

7

 Planned

Giving Campaign

 Fundraising  Policies  Giving

Advisory Committee

and Procedures

Instruments: - Bequests - Retirement Fund Designations - Life Insurance Designations - Gift Annuities - Charitable Remainder Trusts 8







New Payout Formula: 3% - 5% of the trailing five-year quarterly (20) rolling average of each funds net asset balance. The change will make more dollars available – approximately $650,000 – for use in scholarships, awards, program initiatives and general operations. The change will make planning for and the budgeting of such funds much easier.

9

 

The initial rate will be 4%. The proposed rate will be reviewed annually by the Endowment Trustees and the Finance & Audit committee with final approval by the Executive Board.

10

Approval of the New Spending/Payout Formula and Language Changes in ALA Policy 8.5.1 CD #16.1 - Exhibit #13

12



Financial/Accounting System



Web Content Management System



E-Commerce System



Hardware Upgrades



Software Upgrades



Capital Budget



Technology Reserve Fund 13

Purchase Price

Depreciation Depreciation Year 1 Year 2

Computer & Related - GF

$

69,860

$ 10,319

$

ITTS - ALA wide Technology - GF

$ 837,940

$ 83,794

$ 167,588

Computer Related- Divisions

$ 155,952

$ 16,325

$

32,651

General Furniture & Equipment

$

$

4,431

$

8,862

Building Improvements

$ 307,000

$ 15,350

$

30,700

Technology Reserve Fund

$ 650,000

$ 65,000

$ 130,000

Publishing Development Costs

$ 192,000

$ 19,200

$

38,400

Contingency

$ 100,000

$ 16,667

$

33,333

$2,357,064

$231,086

$ 462,173

Total Capital Requests

44,312

20,639



Primary Sources of Revenue: - Membership - Conferences - Publishing



How to Build New Revenue Streams for ALA:

- Current Products to Current Markets - New Products to Current Markets - Current Products to New Markets - New Products to New Markets 15

Areas of Current Activity and Exploration: - Electronic Publishing - Continuing Education Online - International Community - Public/Library Users - Mergers and Acquisitions

16

Details and Approval

“To develop and deploy the financial resources that support the strategic plan and delivery of programs that are responsive to member needs and support the improvement of library service.”



Diversity



Literacy



Equitable Access to Information and Library Services



Organizational Excellence



Intellectual Freedom



Education and Lifelong Learning



Transforming Libraries



Advocacy for Libraries and the Profession 19

Net Assets (Unexpended balance remaining from FY 2011)

+ Revenue (Anticipated for FY 2012)

=

Budgetary Ceiling See Article IX, page 30 of ALA Handbook

20

GENERAL FUND ANNUAL ESTIMATE of INCOME

21

Budgeted FY 2012 Revenues

Dues Material Sales Subscriptions Advertising Meet/Conferences Miscellaneous Total Budgetary Ceiling

$5,852,775 5,477,060 2,653,558 3,931,211 7,394,187 2,511,902 $27,820,693 22

Estimated Beginning Net Asset Balance Budgeted FY 2012 Revenue Other Revenue Transfers*

$11,153,397 16,533,654 24,075

Total Budgetary Ceiling

$27,711,126

(Ending FY11 Projection)

*Life and Continuing Member Dues

23

Estimated Beginning Net Asset Balance Budgeted FY 2012 Revenue

(Ending FY11 Projection)

Total Budgetary Ceiling

$988,830 $425,939 $1,414,769

24

Non-Government Governments Contributions

$2,335,808 2,085,934 681,006

Total Budgetary Ceiling

$5,102,748

25

Budgeted FY 2012 Revenue Interest/Dividend Transfer* Spectrum Interest/Dividends Spectrum Capital Gain Life Member Dues

$555,713 -83,831 80,195 100,244 -68,950

Total Budgetary Ceiling

$583,371

*Per policy 8.5.1

26

Beginning Balance

- $877,562

FY 2012 Expenses

- $279,969

Ending Balance

- $597,593

General Fund Divisions Round Tables Grants & Awards Long Term Investments Subtotal Technology Reserve Fund Total ALA FY 2012 Budgetary Ceiling

$27,820,693 27,711,126 1,414,769 5,102,748 583,371 $62,632,707 $279,969 $62,912,676

Approval of FY 2012 Budgetary Ceiling of $62,912,676

30